We are focused on managing what is under our control.
Despite significantly higher energy prices which offset more favorable metal prices, we achieved solid cost savings results from the restructuring undertaken over the last two years....
The fourth quarter has proven to be extremely challenging as a result of lower volumes, depressed metal prices, and overall weak downstream markets.
A reduced upstream pricing environment and higher energy costs affected out results this quarter.
Global manufacturing weakness has persisted longer than we anticipated, ... In particular, aerospace, industrial gas turbine and telecommunication markets remained soft, reinforcing the need to increase the scope of our cost savings and restructuring initiatives.
We are not satisfied with these results, ... We are confident that the restructuring of our primary and fabricating businesses, coupled with our continued focus on implementing the Alcoa business system and our commitment to grow the company, will enable us to resume sustainable savings and profitable growth in 2002 and beyond.
Despite increasing softness in the construction, transportation, building, and distribution markets, as well as significantly higher energy prices, Alcoa achieved record performance as a result of rapid integration of new acquisitions and execution of its cost-cutting initiative.
While we are still fighting inflationary pressures, cost increases have slowed from last year, and our restructuring and efficiency initiatives have helped strengthen profitability.